On August 31, 2018, Melrose Floral Supply had a $150,000 debit balance in Accounts Receivable and a 56.,000 credit balance in Allowance for Bad Debts. During September, Melrose made: Sales on account, $540,000 Ignore Cost of Goods Sold. Weite-ofls of ncollectible receivables $5.500 Read the requirements Requirement 1. Journalize all September entries using the allowance method. Bad Debts Expense was estimated at 4 % of credit sales. Show all September activity in Accounts Receivable, Allowance for Bad Debts, and Bad Debts Expense (post to these T-accounts). Begin by journalizing all September entries using the allowance method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Sales on account, $540,000. Ignore Cost of Goods Sold. Date Accounts and Explanation Debit Credit X Requirements Sep. 30 1. Journalize all September entries using the allowance method. Bad debls expense was ounts Receivable, Allowance or Bad Debtad Bad Debts Exnense (nast to these T-accounts) 2. Using the same facts, assume that Melrose used the direct write-off method to account for Boctto d d d te 30, 2018 3. What amount of Bad Debts Expense would Melrose report on its September income statement amount batter athods expense with revenue? Give your reason. 4. What amount of net accounts receivable would Melrose report on its September 30, 2018, sheet under each of the two methods? Which amount is more realistic? Gve your reason Print Done